| dc.description.abstract | This study sought to identify the effects of the tobacco regulation on the marketing mix
variables of the tobacco firms in Kenya. It also sought to identify the problems these
firms were experiencing as they modified the marketing mix variables to suit the new
regulated environment.
The rationale for the study arose out of the fact that there is increasing pressure locally
and internationally for enforcement of tough tobacco controls aimed at reducing its
consumption, with some of the lobbyists even calling for the total elimination of the
industry. This has affected the marketing activities of the tobacco firms. Many tobacco
firms therefore have had to adjust their marketing mix variables to respond to the new
challenges.
The study used primary data, which was collected through the use of a questionnaire. The
mode of data collection was though personal interviews. The study was a census study of
the four tobacco firms operating in Kenya.
The data, which was obtained from all the four tobacco, firms was analyzed using
descriptive statistics. Findings of this study revealed that regulation of tobacco industry has brought very
serious challenges to the tobacco industry. The study also found out that the tobacco
firms have reduced significantly advertising and promotions e.g. through outdoor
advertising, electronic and print media.
The industry can longer freely use the traditional marketing mix elements. They have
been forced to modify all the elements if the have to survive. The are now using more
direct ways of reaching their target consumer. Secondly tobacco firms have invested
heavily in marketing research activities in an effort to develop more environment and
user friendly products. A lot of research efforts have also been put on consumer studies in
order to identify more direct and effective channels of communicating to their target
consumers. A lot of promotional efforts are now focussed at the point of sale.
In an attempt to improve and correct the negative public image associated with smoking,
the study found out that these tobacco firms have formed a lobby group to argue and
" present their position to the relevant bodies including the government. The study further
revealed that these firms are also now involving themselves in social responsibility issues
like afforestation, rural health development, informal sector support programmes (like the
Jua Kali sector) as well a contributing to infrastructure development like rural road
repairs and education programmes which are geared to educate the public on the risks
associated with smoking. Finally the research found out that although the tobacco regulations are clearly spelt, the
enforcement of these rules and regulations is quite weak and as a result the locally owned
firms were flouting these regulations. and therefore having an unfair advantage. The study
found out that the subsidiaries of the multinational firms were already on a industry
voluntary code which set the industry's own position with respect to tobacco promotion
and advertising particularly at this time of heavy restrictions on its sale and marketing.
In view of the changing environment as a result of increasing globalization,
internationalization of business and increased calls for regulation of the businesses, the
tobacco industry must look for new perspectives and innovative marketing tools for them
to successfully face the new challenges. The traditional marketing mix elements cannot
freely be applied in the regulated business environment and therefore the need to identify
new ways through which to reach their target consumers. Tobacco firms able to develop
environmentally friendly products with affordable prices and able to maintain low
operational costs will have a competitive advantage in the market place.
The researcher intended to collect the information from all the marketing managers or
their equivalents, from the four firms but in one of the firms it was not possible to
personally collect the information. The questionnaire was left and was picked later. Thus
it was not possible to gather additional information or expound on questions that may
have required elaboration. Besides some of the respondents were reluctant to discuss
some of the issues especially where they were aware that they were flouting the
regulations. These limited gathering of additional relevant information. This study has been conducted at a time when the government machinery has not been
able to fully implement and enforce all the control measures proposed in the tobacco control bill. Besides there is mounting external pressures from the WHO and other
multilateral donor agencies on the government to enforce the existing regulations and
enact new ones. There is therefore need for further research when these regulations are
fully enforced.
Strict enforcement of the tobacco regulations will create a new regulated environment in
which some of the firms currently operating in Kenya will pull out or new players will
enter the market. This will provide also need for further research to find out how the
firms' marketing mix elements will be affected and to document how these firms will
modify these variables to suit the fully regulated environment. | en |
